Genesis Research close up shop as funds run dry

It lasted longer than it originally thought it would, but Genesis Research is finally shutting down its New Zealand operations after running out of cash.

The listed research company indicated in February last year that it did not have the funds to continue for another 12 months, but it kept going for another 14 before this morning’s announcement.

In a statement released to the share market, Genesis said it was still negotiating several transactions, including a company with “several therapeutic development projects” that would be initially funded by a $450,000 placement of shares.

But Genesis chief executive Stephen Hall said there were not enough funds to allow ongoing development of its Solirna technology in New Zealand.

“The Foundation for Research Science and Technology has declined to provide any substantive funding and at this stage the Japanese investor in Solirna is still determining whether it will provide further funding.”

Genesis was founded in 1994 and is targeting therapies for immune disorders and cancer.

It recorded a full year loss of $0.8 million in 2009, after slumping to a full year loss of $7.5 million the previous year, with its cash balance down to $0.3 million by the end of the year.

In March it completed a $193,000 share purchase plan.

It remains a minnow on the new Zealand stock market (NZX: GEN), trading for less than 20c since the start of 2008. Shares are currently worth 6c.